Hong Kong liquidators of China Evergrande have chosen Guangdong Provincial Tourism Holdings to enter exclusive negotiations for a controlling interest in Evergrande Property Services. The move narrows the field that previously included private‑equity house PAG and Trustar Capital, signaling a preference for a state‑backed buyer as creditors scramble for any recovery.

Evergrande Property Services, listed in Hong Kong, carries a market value of roughly $1.7 billion, far below its 2018 peak of $26 billion. The firm accounts for about 51 % of Evergrande’s remaining assets, generating 987 million yuan in net income on 13.7 billion yuan revenue last year. Liquidators Edward Middleton and Tiffany Wong, appointed by the High Court in 2024, hope the deal can shore up creditor recoveries.

The filing with the Hong Kong Stock Exchange confirms a 30‑business‑day exclusive negotiation period, though it omits the bidder’s name. Should Guangdong Provincial Tourism seal the purchase, other investors may be invited to co‑invest. Evergrande’s 2021 default triggered a cascade of bondholder losses and a prolonged slump in China’s property market, while founder Hui Ka Yan recently pleaded guilty to fundraising fraud and bribery.

With Evergrande Property Services now the focal asset, the exclusive talks could determine how much of the $300 billion debt chain can be salvaged. Creditors hope the state‑run buyer brings financing clout, but the discounted valuation underscores how far the once‑giant developer has fallen. The outcome will shape recovery prospects for dozens of banks and bond funds.